Yes, it is currently a hot seller’s market.
With low inventory and buyers actively searching, the market is moving faster than we’ve seen in years. However, sellers aren’t the only ones benefitting from the current market. Record low interest rates benefit buyers, allowing them to get more house for their money.
If you are ready to buy and take advantage of the current rates, there’s no need to be intimidated.
But you do need to be prepared.
Keep reading for five tips to prepare to buy in a seller’s market.
Know Your Finances
Before you start searching for homes, make sure your finances are in order. Meet with a mortgage lender to get pre-approved. A pre-approval shows sellers you can obtain full financing, and allows you to make a confident offer within your budget.
Once you are pre-approved and start looking at homes, remember to factor in your downpayment, closing costs, property taxes, and homeowners insurance when estimating costs. Preparing your finances ahead of time helps you understand exactly what you can afford.
Determine Your Must-Haves
Once you are comfortable with your budget, know what your must-haves in a home. How many bedrooms do you need? What community do you want to be in? What’s your preferred floorplan? You can also think about any dealbreakers that will make you walk away from a property. These lists will help you stay on track, enabling you to make a decision quickly.
Homes are moving quickly – in some cases receiving multiple offers within the first couple of days on market. Check-in daily on your home search, looking for new properties that suit your needs. If you see a home you love, be flexible with your time so you can schedule a showing as soon as possible.
Start with a Competitive Offer
Work with your buyer’s agent to start with a competitive offer. Opening with a low offer shows the seller that you aren’t really serious, and will likely be met with rejection, without the opportunity to raise your offer. Remember that a competitive offer goes beyond the purchase price, and includes factors such as the size of your downpayment, the number of contingencies, and how quickly you can close.
Be Prepared to Walk Away
Bidding wars are becoming more common in today’s market. You outlined a budget for a reason – so make sure you stick to it. Before making an offer, know what your highest number is, and be prepared to walk away and continue your search if another buyer outbids you.
Are you ready to begin your search?